ILLUSTRATION 2

Perpetual inventory system

DATE PARTICULARS (ACCOUNT) DEBIT CREDIT

JAN 1 Merchandise Inventory 8,000
Accounts Payable 8,000
Purchase Meat
JAN 3 Cash 9,000
Sales 9,000
Credit – Sales

Cost of goods sold 8,000

Merchandise inventory 8,000
To. rec sales
JAN 4 Merchandise inventory 9,000
Cash 9,000
Trucking expense 1,000
Cash 9,000
Purchase meat
JAN 5 Account receivable 4,000
Sales 4,000
Credit sales
Cost of goods sold 2,000
Merchandise inventory 2,000
To rec. sales
JAN 7 Rent expenses 1,500
Cash 1,500
JAN 15 Telephone Bill expense 5,000
Cash 5,000
JAN 15 Salary expense 1,000
1,000
JAN 18 Cash 5,000
Sales 5,000
Credit sales